Does the 3-year rule apply if I'm terminated, not resigning?

No. The 3-year threshold and the resignation reduction scale only apply when you voluntarily resign from an indefinite contract. If your employer terminates you (outside of Article 41 cause-based termination), you receive 100% of your indemnity regardless of how long you worked there.

What if I'm on a fixed-term contract, not indefinite?

The resignation reduction scale doesn't apply to fixed-term contracts the same way. If you complete a fixed-term contract or are terminated during it, you're entitled to 100% of your indemnity. Leaving a fixed-term contract early without justification can mean receiving nothing — always check your specific contract type.

Is the indemnity calculation based on basic salary or total salary?

Basic salary only. Allowances such as housing, transport, and other regular payments are excluded from the indemnity calculation under Kuwait Labor Law.

Indemnity & End of Service

If I resign before completing 3 years in Kuwait, do I get any indemnity at all?

💬 Asked by a KuwaitCalculator.com reader · Published August 2026

Short answer

If you're on an indefinite (open-ended) contract and resign before completing 3 full years of service, you receive 0% indemnity — nothing at all, under Article 53 of Kuwait Labor Law. This only applies to voluntary resignation on an indefinite contract; termination by your employer, or completing a fixed-term contract, works differently.

Why 0% Before 3 Years?

Article 53 of Kuwait Labor Law No. 6 of 2010 sets a minimum service threshold before an employee who voluntarily resigns from an indefinite (open-ended) contract becomes entitled to any end-of-service indemnity. That threshold is 3 full years. Resign at 2 years and 11 months, and the calculated amount is reduced to zero — not partially, entirely.

The Full Resignation Reduction Scale

Years of Service	You Receive
Under 3 years	0% — no indemnity
3 to 5 years	50% of calculated indemnity
5 to 10 years	66.67% of calculated indemnity
10+ years	100% — full indemnity

This Only Applies to Voluntary Resignation

If your employer terminates you (and it's not a termination for cause under Article 41), you're entitled to 100% of your indemnity regardless of years served — even if that's after just 6 months. The reduction scale exists specifically to discourage employees from resigning too early, not to penalize someone let go by their employer.

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Fixed-term contracts work differently. The resignation reduction only applies to indefinite contracts. If you're on a fixed-term contract and either complete it or are terminated, you're entitled to 100% of your calculated indemnity. If you leave a fixed-term contract early without justification, you may receive nothing — check your specific contract type before assuming which rule applies to you.

What Counts as "Basic Salary" for the Calculation?

Before the resignation reduction is even applied, your indemnity is calculated from your basic salary only — allowances like housing or transport are excluded. The formula uses 15 days' pay per year for the first 5 years, and 30 days' pay per year after that, capped at 1.5 years' total salary (18 months).

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Want to see your exact number? Use our Indemnity Calculator — enter your basic salary, years of service, and contract type, and it applies the correct resignation tier automatically.

Related Kuwait Calculators & Guides

🧮Indemnity Calculator 💰Salary Calculator ⚖️Labour Law Guide